The state of Illinois is the latest state to crack down on unregulated operators, with the Illinois Gaming Board sending out a total of 11 cease & desist demand letters to unlicensed sports books and daily fantasy sports websites operating in the state.

In a significant move to enforce state gaming laws, Illinois has launched actions against almost a dozen gaming operators within a week. The Illinois Gaming Board, working alongside the office of the Illinois Attorney General, issued 11 cease-and-desist (C&D) letters earlier this month to operators suspected of violating state gaming laws.

Illinois targets unlicensed operators

In the days leading up to the Super Bowl, Illinois Attorney General Kwame Raoul intensified the state's efforts to curb unlicensed sports wagering. In a statement, Raoul specifically named PrizePicks, the daily fantasy sports (DFS) operator and Bovada, the popular offshore sportsbook, categorizing them as "alleged unlicensed sports wagering sites."

The IGB's enforcement actions extended beyond these two entities, with additional C&D letters sent to 11 other gaming operators, namely Bet Any Sports, Bet Online, Bet US, Blitz Studios, Inc. d/b/a Sleeper, Book Maker, Taild Sports Inc. d/b/a Chalkboard, Drafters, Heritage Sports, and Parlay Play.

According to the IGB, these operators engaged in unlicensed sports wagering, violating both the Illinois Sports Wagering Act as well as the Illinois Criminal Code. The Board's definition of sports betting includes traditional betting methods like parlays, single-game wagers, prop bets, and in-play bets, in addition to exchange wagering and betting pools.

Growing nationwide efforts against offshore operators

Illinois' latest enforcement measures are in sync with a broader national effort to eliminate unlicensed gambling operators. Throughout 2024, states have been increasingly targeting offshore sportsbooks and casinos, with Bovada frequently mentioned.

Illinois is not alone in stepping up regulatory action in 2025. The Michigan Gaming Control Board also recently announced enforcement measures against unlicensed operators, issuing C&D letters to 9 online casinos, which includes Bet Any Sports. Michigan has previously taken action against MyBookie, Bovada, One Country and VGW, and skill-based gaming provider Papaya Gaming.

Many of the targeted gaming operators operate offshore, outside the jurisdiction of US regulatory bodies. For example, Bovada is based in Curacao, while Bet Any Sports, Book Maker, and Bet US operate from Costa Rica. Similarly, Bet Online is headquartered in Panama, demonstrating the international nature of unlicensed gaming operations.

Illinois takes aim at DFS operators

While offshore sportsbooks have been the primary focus of enforcement actions, Illinois is also targeting certain DFS operators. The IGB also issued C&D letters to multiple DFS platforms, including Sleeper, Chalkboard, PrizePicks, and Drafters, arguing that their single-player contests violate Illinois' legal definition of fantasy sports.

PrizePicks, an Atlanta-based company that operates legally in over 40 US states, has come under increasing scrutiny. Several states, including Maryland, Arkansas, West Virginia, and Ohio, have raised concerns that PrizePicks' against-the-house contests are quite similar to traditional sports wagering rather than skill-based competitions.

The IGB's letter to PrizePicks and other DFS operators emphasized that their offerings do not align with the multi-participant contests recognized by the Illinois Supreme Court as legal DFS activities. However, PrizePicks responded to these concerns by announcing plans to transition to its peer-to-peer Arena product in Illinois, a model it has used to re-enter states such as Florida.

Legislative efforts to clarify DFS regulations

As the crackdown continues, there is growing momentum in the Illinois legislature to formally regulate DFS offerings. Lawmakers have introduced bills aimed at defining and legalizing fantasy sports operations within the state.

Senator Lakesia Collins, who authored SB1224, and Senator Bill Cunningham, who proposed SB2145, seek to establish clear guidelines for DFS contests, providing legal clarity for operators and consumers alike. PrizePicks has expressed optimism about these legislative efforts, stating that it is 'encouraged' by the introduction of these bills, which could shape the future of DFS in Illinois.